Managing rates and debt

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We are proposing a package of budget changes that will result in a total rates increase for the average value residential property of 4.66 per cent or $154 a year (around $3 a week).

What we are proposing

Rates increase of 4.66 per cent

We propose an average increase in general rates of 7.0 per cent across all existing properties, including non-residential.

We propose reducing the Natural Environment Targeted Rate (NETR) and Water Quality Targeted Rate (WQTR) by around two thirds and using the money we have already collected from these targeted rates to continue delivering these work programmes as planned in 2023/2024.

Graphic of cog with words rates increase

We propose pausing our change to the split between business and residential rates.

Under our current policy, annual increases to general rates for business properties are less than for non-business (residential and farm/lifestyle) properties, so that over time the share of general rates paid by business properties is fairer.

Our proposal is to put this change on hold for one year. See page 54 of the consultation document (PDF 12.8MB) for more details.

Check our online calculator to see how the proposal would change your rates.

Debt

We propose to increase our use of debt by up to $75 million for 2023/2024.

This will be used to fund some capital expenditure (assets such as roads, pipes and buildings) that is currently planned to be funded by operating revenue (such as rates and user charges).

This will free up that operating revenue to help address our budget shortfall.

Graphic of cog with word debt

Our current financial settings would allow us to use up to $140 million of additional debt. However, using debt will not address the underlying operating cost challenge each year and merely postpones the need for a long-term solution to the ongoing budget gap.

Greater use of debt also increases future interest costs. It reduces the debt headroom available to address any unexpected financial shocks.

For these reasons, our view is that debt should be used sparingly and only as a last resort to address the operating budget gap.

You should know

This information is an edited version of the Annual Budget 2023/2024.

See pages 16 and 17 of the Annual Budget 2023/2024 (PDF 12.8MB) for more information.

We are proposing a package of budget changes that will result in a total rates increase for the average value residential property of 4.66 per cent or $154 a year (around $3 a week).

What we are proposing

Rates increase of 4.66 per cent

We propose an average increase in general rates of 7.0 per cent across all existing properties, including non-residential.

We propose reducing the Natural Environment Targeted Rate (NETR) and Water Quality Targeted Rate (WQTR) by around two thirds and using the money we have already collected from these targeted rates to continue delivering these work programmes as planned in 2023/2024.

Graphic of cog with words rates increase

We propose pausing our change to the split between business and residential rates.

Under our current policy, annual increases to general rates for business properties are less than for non-business (residential and farm/lifestyle) properties, so that over time the share of general rates paid by business properties is fairer.

Our proposal is to put this change on hold for one year. See page 54 of the consultation document (PDF 12.8MB) for more details.

Check our online calculator to see how the proposal would change your rates.

Debt

We propose to increase our use of debt by up to $75 million for 2023/2024.

This will be used to fund some capital expenditure (assets such as roads, pipes and buildings) that is currently planned to be funded by operating revenue (such as rates and user charges).

This will free up that operating revenue to help address our budget shortfall.

Graphic of cog with word debt

Our current financial settings would allow us to use up to $140 million of additional debt. However, using debt will not address the underlying operating cost challenge each year and merely postpones the need for a long-term solution to the ongoing budget gap.

Greater use of debt also increases future interest costs. It reduces the debt headroom available to address any unexpected financial shocks.

For these reasons, our view is that debt should be used sparingly and only as a last resort to address the operating budget gap.

You should know

This information is an edited version of the Annual Budget 2023/2024.

See pages 16 and 17 of the Annual Budget 2023/2024 (PDF 12.8MB) for more information.

Page last updated: 29 Mar 2023, 10:16 AM